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Why are rural hospitals closing in the U.S.? Predictors identified using explainable machine learning.
Kiruthika Balakrishnan1,2, Tesfamariam M Abuhay3,4, Hana E Hinkle5
1National Center for Rural Health Professions, University of Illinois College of Medicine Rockford, 1601 Parkview Avenue, Rockford, IL, 61107, USA. bkiruthi@uic.edu.
BMC Health Services Research
|May 29, 2026
Summary
Rural hospital closures are driven by long-term financial and operational instability, not just short-term issues. Explainable machine learning models can help identify at-risk hospitals for early intervention.
Area of Science:
- Healthcare Management
- Health Services Research
- Machine Learning in Healthcare
Background:
- Rural hospital closures exacerbate healthcare access issues and negatively impact community health and economic outcomes.
- Identifying risk factors for rural hospital closures is crucial for developing targeted interventions.
Purpose of the Study:
- To identify and interpret the key risk factors associated with rural hospital closures in the U.S.
- To leverage explainable machine learning (XML) and national longitudinal data for this analysis.
Main Methods:
- A retrospective longitudinal study of U.S. rural hospitals (2011-2022) using integrated financial, operational, policy, population, and community data.
- Utilized XGBoost classifier with cross-validation and hyperparameter tuning, employing SHapley Additive exPlanations (SHAP) for model interpretability.
- Addressed data challenges including class imbalance and multicollinearity.
Main Results:
- The predictive model achieved 86% recall, 75% accuracy, and 89% AUC.
- Key closure risk factors include sustained financial and operational instability, policy context (e.g., Medicaid expansion timing), and community sociodemographics.
- Community factors may reflect underlying socioeconomic conditions influencing closure risk.
Conclusions:
- Rural hospital closure risk is a result of accumulated long-term financial and operational instability, influenced by policy and community contexts.
- Longitudinal data and XML offer a practical framework for early warning systems to support proactive monitoring and interventions.
- This approach is particularly valuable for hospitals serving historically underserved populations.
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